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You’re reading a lot about analytics these days. It is the workhorse of business intelligence. When people hear the word analytics they immediately think statistics. What they should think is logic. Analytics is a framework of logic that is operationalized through statistics. Logical thought comes first and statistical manipulation comes second.
Last week I spoke to 750 people at the Tennessee SHRM conference in Opryland and another large group at the HR Tech conference in Chicago. My message was two fold. First, don’t be afraid of analytics. It is really just clear, unbiased, sequential thinking. Second, you can apply it to problems big and small. One of my clients is writing a case study for my new book (tentative title: The New HR Analytics; AMACOM, Spring 2010*) on how they applied our predictive HCM:21 analytic system. In their words: “In the case study, we will outline in detail the process and issues in implementing HCM thinking for decentralization and delegation of decision-making and control.”
When I got home today I received a call from someone in the audience and signed on to help them work out problems related to uneven mix of skills in their workforce, improving efficiency in their supply chain, redesigning the structure of their marketing and sales function, and dealing with cultural mismatches in emerging new markets. No single product can do that.
What makes analytics different is that it is not a fixed solution in search of a given problem; i.e., six sigma quality circle, reengineering project, performance management software or an engagement survey. Analytics is simply sound organizational management thinking that works everywhere. It uncovers hidden biases, obsolescent experiences and faulty memories of people who “know what to do.”
We have to invest in rational thinking the same way we invest in the capital equipment we'll need for the future. It is the same as we invest in R&D, the same as we invest in intellectual property. Right thought leads to effective actions.
As Thomas Watson Sr., founder of IBM reminded his people: THINK. Analytics teaches us how to think about investment decisions.
Dr Jac
*If you contact my editor, Christina Parisi at AMACOM, with a prepublication order she will probably give you a discount:
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Dr. Jac Blog 
